The Great Amazon Price Drop Boomerang

Thinking about dropping your prices significantly on Amazon? Brace yourself—you might just become the star of a surprise encore called “Return, Rebuy, Repeat.”

Here’s the plot: a savvy customer buys your product at $50 on Monday. Then on Wednesday, they see you’ve slashed the price to $35. Cue the “Oh no, they didn’t!” moment. Before you know it, they’re hitting that Return Item button faster than you can say “returns processing fee,” only to repurchase at the lower price.

Why Does This Happen?

Because Amazon shoppers are basically Olympic-level deal hunters. If they sniff out a bargain they missed, they’ll bend the rules of time, space, and convenience to snag it. And can you blame them?

What Can You Do?

1. Avoid Wild Swings: Dropping prices too steeply might clear inventory, but it also clears out your margins—along with your sanity. Opt for smaller, strategic discounts instead of a freefall.
2. Offer Retroactive Discounts: To keep customers happy (and avoid a tidal wave of returns), consider offering refunds for the price difference if the purchase was recent. They’ll feel appreciated, and you won’t end up swimming in returned inventory.
3. Time It Right: Plan your price changes strategically. If you’re about to launch a discount, don’t tempt fate by running out of stock due to a return-rebuy cycle.

So, the next time you think about slicing prices like a Black Friday ninja, remember: your customers are watching. And if they spot a bargain, they’ll make sure you know it. Price wisely, and save yourself the boomerang headache!

Got questions? Drop a comment or send me an email.